Working on a friends atv. In 4x4 both wheels work fine. Turn off 4x4 and the right wheels stays engaged. If i stop and reverse it unlocks and all is good.

Has fresh demand drive oil in it filled to 3:00. Axle nut torqued to 12ftlbs. I didnt really see anything else in the hub that stood out when i had it apart. Thought about loosening axle nut to 10 or 11 ftlbs. Thoughts?

 

Probably armature plate magnetized causing it to release slower than the other side. If fresh fluid doesn't help,then it's usually the plate. Plus most people have to do the same thing. Stop,back up then go forward to unlock the offending side. If you're going to replace one,I'd do both sides at the same time and be done with it.Sooner or later the other side (with about the same wear) will probably do the same. Not that expensive,but just a little more labor involved.Don't loosen the hub nut to try to compensate! Keep it torqued at 12 ft pounds. Item#3.
Dirt Cheap Yamaha & Polaris OEM Parts & Accessories – Cycle Parts Warehouse

 

Thank you. I will try a new plate and report back.